However, Presiding Officer Dafydd Elis Thomas said it paved the way for new ways of daily news in Welsh, with its future on the internet.

"If some people did believe that there was a way for a national government to give money to a single newspaper, to be published in print, being subsidised by government adverts - if they believed that was ethically possible in terms of the standards of public life then they are living, as we say in the north, in cuckoo land," said Lord Elis Thomas.

Y Byd, with its office in Machynlleth, was first unveiled last June when the company said it would print the first copy on St David's Day this year.

Five thousand subscribers were being sought for the publication, which was to cover Welsh, UK and international news.

However, in November the company announced that it was reviewing the timetable for the launch.

It said the move was prompted by the wider review of the Welsh language press by the minister and the Welsh Language Board.

The report concluded there was evidence of interest, but it also concluded not enough people would buy Y Byd to make it viable.